⚡ Quick Read
- What happened: The Andhra Pradesh Electricity Regulatory Commission (APERC) has mandated that existing LT and HT power tariffs for FY 2025-26 will remain unchanged for FY 2026-27.
- Why it matters: The decision provides long-term tariff predictability for C&I consumers and developers, while the absence of an additional surcharge offers a stable environment for open access projects.
- Watch: Potential future filings for additional surcharges by DISCOMs, which APERC has permitted to be submitted within the next three months.
Background and Context
The Andhra Pradesh Electricity Regulatory Commission (APERC) has issued a directive maintaining the current power tariff structure for the financial year 2026-27. By extending the existing Low Tension (LT) and High Tension (HT) tariffs approved for FY 2025-26, the commission aims to provide regulatory certainty to the state’s energy ecosystem. This decision comes as a relief to various consumer segments, including industrial and commercial entities, who rely on stable pricing to manage their operational expenditures.
Key Details
Under the notified order, the tariff structure remains consistent across major categories. For domestic consumers, the LT fixed charge is set at ₹10/kW, while HT domestic consumers face a fixed charge of ₹75/kVA and an energy charge of ₹7/kWh. Commercial HT consumers are subject to a fixed charge of ₹475/kVA, with energy charges tiered by voltage level: ₹7.65/kWh at 11 kV, ₹6.95/kWh at 33 kV, ₹6.70/kWh at 132 kV, and ₹6.65/kWh at 220 kV.
Industrial consumers also see stability, with HT categories maintaining a fixed charge of ₹475/kVA. Energy-intensive industries benefit from lower energy charges, ranging from ₹5.80/kWh at 11 kV to ₹4.90/kWh at 220 kV. Notably, the commission confirmed that no additional surcharge has been determined for the state’s three DISCOMs, as no formal proposals were filed. However, the commission has left the door open for such filings to be made within the next three months.
The order also clarifies Time-of-Day (ToD) tariffs for high grid demand months, including April-May 2026, September-October 2026, and February-March 2027. Standby charges for long-term open access consumers are capped at 120% of the normal tariff for a cumulative duration of up to 72 hours per month.
What This Means for EPCs and Developers
For solar and wind developers, particularly those focused on the Commercial & Industrial (C&I) segment, the status quo is a positive indicator. Predictable tariffs allow developers to better model the ROI for open access projects and green power procurement. The clarity on the green power tariff, set at ₹9.95/kWh, provides a clear benchmark for corporate entities looking to meet ESG mandates through renewable energy procurement.
What Happens Next
While the current order provides immediate stability, stakeholders should monitor the DISCOMs’ actions regarding potential additional surcharge filings. APERC’s provision allowing these proposals within three months suggests that the regulatory landscape could shift mid-year. EPC contractors should factor this potential volatility into their long-term project planning and contract negotiations for new open access installations in the state.
